Pallara: The surprising suburb ticking boxes

15/03/2018

Media attention around Brisbane has recently focused on inner-city apartment oversupply, and investors may be avoiding the market for this reason. 

“Brisbane’s property market historically has always lagged behind the other eastern seaboard capitals. But Brisbane’s median house price is now 50% below Sydney’s, so is it Brisbane’s time to shine? It certainly ticks the affordability box!” says Ian Hosking Richards, CEO of Rocket Property Group.

“The good news is that Brisbane ticks the infrastructure spending box as well, with 10 major infrastructure projects planned or underway worth over $100bn, creating over 63,000 jobs.” 

Property in Pallara (source: supplied)

The median acreage price of property in Pallara is $1.51m, which may appear to exclude it from an investor’s radar. However, as a relatively new suburb affected by rezoning as part of the SE Qld Regional Plan 2009–2031 and the Lower Oxley Creek South Neighbourhood Plan, this median could be misleading to investors looking for affordable properties. 

In fact, Pallara, which is close to major transport links and local employment hubs, remains affordable, with new family homes in the newly developing estates priced at approximately $500,000. It is around 17km from Brisbane and 9km from Sunnybank, a major shopping precinct that is a drawcard for the area. Taking into account that Pallara is surrounded by the established suburbs of Parkinson, Calamvale and Heathwood, with median house prices of $636,000, $663,000 and $545,250 respectively, the true story begins to emerge of its potential.

It’s little wonder that Pallara has become an important infill suburb for residential development within Brisbane’s southwest urban growth corridor.

“Due to the change of zoning and the development of land in affordable new residential estates in Pallara, you can buy full turnkey, brand-

new four-bedroom homes from $500,000, renting from $490 a week,” says Hosking Richards. 

“This makes it an ideal affordable investment for investors with great potential for capital growth. We have successfully secured four-bedroom, two-bathroom, two-car house and land packages for our investors in the prime estates, close to the new independent Pallara State School, with developers that offer only 20% of land for investment, with 80% for local buyer owner-occupiers.” 

An interesting comparison is Pallara and Rochedale, which is also in the Brisbane LGA and around 17km south of the Brisbane CBD, and previously a semi-rural community, says Hosking Richards.

“ About six years ago, Rochedale was rezoned. It had new residential developments released into the largely acreage suburb. The secret lies in the change of zoning from residential acreage property to low- to medium-density residential. As a result, Rochedale started growing: the median house price lifted from $415,000 in 2011 to $900,000 in 2016, going over $1m in 2017,” he adds.

“We see the suburb of Pallara as a great investment choice for investors in the early days of the redevelopment of this urban growth area in Brisbane LGA. And who knows, it may mirror the growth that occurred in Rochedale.” 

BRISBANE’S $100BN INFRASTRUCTURE BOOM

•  $85bn investment in Greater Springfield in 2015, including aged care, Mater Hospital, GE office accommodation, $1.2bn Springfield rail corridor, and Orion Central shopping centre
•  $5.4bn Cross River Rail project
•  $3.8bn earmarked for investment in major projects over the next decade at Brisbane Airport Corporation
•  $3bn Queen’s Wharf project
•  $2bn Brisbane Live entertainment precinct
•  $1.54bn Brisbane Metro rail line
•  $1bn Brisbane Quarter at 300 George Street
•  $160m Springwood mixed-use development
•  $158m mega cruise ship terminal
•  $110m Howard Smith Wharves revitalisation

  Source: Pallara House & land Market – National Property Research Co